Four more startups have been added by the Reserve Bank of India to the regulatory sandbox cohort for digital retail payments taking to a total number of six. Fintech startup ToneTag, CityCash, Mumbai-based PoS smart card provider, Urban Technologies, voice authentication, and Eroute Technologies, Delhi NCR-based have been selected. The four startups join Jaipur-based Natural Support Consultancy Services and Delhi-based Nucleus Software Exports in the cohort. In November itself, both companies started testing their payment solutions.
‘eRupaya’ is a set of near-field communication (NFC) system, based on a prepaid card and NFC activated Point of Sale (PoS) automation. They are the products of ‘Natural Support Consultancy Services’. ‘Payse’, is a product of Nucleus which helps to connect with rural areas for epayments. Both systems help to provide offline transactions at merchants and retailers in remote locations. Similar to the existing companies, the new startups also work in the various fields of problem-solving in the retail payment as identified by the RBI.
CityCash was founded in 2017. It offers a smart card for NFC-based contactless payments. It starts functioning for the transport department of the state government and also the tourism department to promote card-based payments. It has been a part of August 2020 announced VC Orios Ventures’s third cohort of the Misfits program. ToneTag, a Bengaluru-based startup founded in 2013 which uses soundwaves and receiver to authenticate payments. The system connects a smartphone to a PoS machine using specific soundwaves. The company has raises over $10.3 Million in funding with investors such a Mastercard, 3one4 Capital, Amazon, etc.
In the case of Eroute Technologies founded in 2018, it also offers card-based payment solutions. This startup is targetting young consumers with its prepaid card accepted by merchants in the cards and the Bharat QR network. Its UPI-based offline payment solution uses a smartcard for Peer Peer or Person to Merchant transactions. Its special feature is, it offers payment solutions for non-internet connected phone users also. Ubona Technologies, a Bengaluru-based firm facilitate voice, image, and music recognition technology to payment providers or any other businesses. It also provides customer service and solutions through voice interactions and more. The regulatory sandbox will also look for startups in other areas rather than the retail payments only. Its next area of focus is cross-border payment.